A 40-year-old money exchanger received a two-year prison sentence and a 133 million KRW fine for conducting unreported cryptocurrency transactions linked to Cambodia's Huione Group. Judge Ryu Ji-mi of the Seoul Central District Court Criminal Division 5 issued the ruling on 지난 9일, marking the first confirmed guilty verdict for cryptocurrency money laundering connected to the Huione Group. The defendant, identified as A, operated an exchange that facilitated 15.5 billion KRW in unreported crypto transactions across 194 instances between 2022 and 2024, following instructions from Huione Group associate B. The court determined A played an essential role in the operation by managing crypto accounts, bank accounts, and fund transfers, receiving commissions in return. This case emerges amid heightened scrutiny of Huione Group, a Cambodian criminal organization sanctioned by the US Treasury's Financial Crimes Enforcement Network in October for laundering at least $4 billion between 2021 and 2025, with cryptocurrency identified as part of the operation.
Court Applies Business Activity Precedent to Money Laundering Case
Judge Ryu Ji-mi ruled that A and associate B operated as co-conspirators in a business activity, applying Supreme Court precedent 2025도4431 that defines virtual asset service providers as those who continuously and repeatedly conduct transactions for the benefit of unspecified multiple customers in exchange for compensation. The court found A provided essential functions beyond simple labor, including managing digital asset accounts and bank accounts, executing fund transfers to overseas accounts as directed by B, and transmitting cryptocurrency. The ruling stated A's role involved "functional control through essential contribution" rather than auxiliary support.
Investigations revealed A purchased cryptocurrency on domestic exchanges or received overseas-purchased crypto into domestic exchange accounts under B's instructions, then sold the assets and transferred proceeds to Huione-designated recipients or withdrew cash for delivery. A conducted 194 unreported digital asset transactions totaling approximately 15.5 billion KRW between 2022 and 2024. Additionally, A performed 135 unregistered foreign exchange transactions worth 2.9 billion KRW between 2021 and 2023, including remittances to China.
Huione Group Faced US Sanctions in October
The Huione Group became publicly known in October when the US indicted Prince Group chairman Tian Zi for telecommunications fraud and money laundering. The US Treasury's Financial Crimes Enforcement Network designated Huione Group as a sanctions target on the 14th of that month, blocking the organization from the US financial system. FinCEN identified Huione Group's illegal money laundering operations totaling at least $4 billion between 2021 and 2025, with digital assets comprising part of the laundered funds.
The Prince Group case revealed cryptocurrency's role in the money laundering process, prompting examination of connections to Korea. The Huione Group operates through multiple entities, including Huione Guarantee, a cryptocurrency exchange platform.
Korean Exchanges Recorded 16 Billion KRW in USDT Transfers with Huione
Data obtained by Representative Lee Yang-soo of the People Power Party from the Financial Supervisory Service showed approximately 16 billion KRW in USDT transfers between domestic Korean won-market exchanges and Huione Guarantee between 2023 and 2025. Korean won-market exchanges suspended Huione deposits and withdrawals around the time of FinCEN's sanctions action.
Separate data obtained by Representative Kang Min-guk from the Financial Supervisory Service revealed that five Korean bank local subsidiaries conducted 52 transactions worth 196 billion KRW with Cambodia's Prince Group. Four domestic Korean banks held Prince Group funds totaling 91.2 billion KRW in deposits.
FAQ
What sentence did the Korean court impose on the Huione-linked exchanger?
The Seoul Central District Court sentenced the 40-year-old exchanger to two years in prison and imposed a 133 million KRW fine on 지난 9일. The court convicted the defendant of violating the Act on Reporting and Using Specified Financial Transaction Information and the Foreign Exchange Transactions Act for conducting 15.5 billion KRW in unreported cryptocurrency transactions and 2.9 billion KRW in unregistered foreign exchange transactions.
How much cryptocurrency moved between Korean exchanges and Huione Group entities?
Approximately 16 billion KRW in USDT transfers occurred between domestic Korean won-market exchanges and Huione Guarantee between 2023 and 2025, according to Financial Supervisory Service data provided to Representative Lee Yang-soo. Korean exchanges stopped Huione deposits and withdrawals following US FinCEN sanctions in October.
What legal precedent did the court apply in this case?
The court applied Supreme Court precedent 2025도4431, which defines virtual asset service providers as those who continuously and repeatedly conduct transactions for unspecified multiple customers' benefit in exchange for compensation. Judge Ryu Ji-mi determined the defendant's role involved functional control through essential contribution, not merely auxiliary support, based on the defendant's management of accounts and execution of transfers.
